The first half of 2025 marked one of the most challenging fundraising environments in recent years, with a 23% year-over-year decline in capital raises, according to a recent report. The year has been especially difficult as it’s been marked with constrained limited partner (LP) liquidity, muted exits and elevated cost-of-capital dynamics, which have shifted negotiating power decisively toward investors.
General partners (GP) are pulling from a smaller pool of capital in 2026, increasing competi...
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